Sterling down as UK 'turbo-charges' no-deal plans

Credit: Reuters Studio

Published on July 29, 2019 - Duration: 01:58s

Sterling down as UK 'turbo-charges' no-deal plans

The UK is "turbo-charging" its preparations for a no-deal Brexit, the UK's foreign secretary said on Monday - something that many investors fear would disrupt the global economy and send Britain into recession.

David Doyle reports.

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Sterling down as UK 'turbo-charges' no-deal plans

Britain is "turbo-charging" its preparations for a no-deal Brexit, a senior minister said on Monday (July 29) - something many investors say would send shockwaves through the world economy and crash Britain into recession.

Amid rising concerns over a disorderly exit from the European Union, sterling dropped by 0.4% on Monday morning to $1.23, its lowest level since March 2017.

Foreign Secretary Dominic Raab said the UK does want to secure a deal, but that the EU needs to change its "stubborn" position.

(SOUNDBITE) (English) BRITISH FOREIGN SECRETARY, DOMINIC RAAB, SAYING: "It's not just going to revert to where we left off in the last negotiations.

There must be some change from the EU." EU leaders have reiterated that the Withdrawal Agreement brokered with former Prime Minister Theresa May is not up for negotiation.

But her successor, Boris Johnson, is betting that the threat of a no-deal Brexit will persuade EU's biggest powers - Germany and France - to agree to revise the divorce deal.

He was in Scotland on Monday (July 29), to promise £300m to boost the UK's devolved regions.